Today’s launch of Massachusetts online sports betting will be a big deal in the industry. It is a long and difficult process that should be celebrated.
The Massachusetts Gaming Commission (MGC) meeting on Thursday cast a shadow over the celebrations, and with good reason. Representatives of the Massachusetts AttorneyGeneral’s office spoke with the commissioners. They expressed concern over what they anticipate to be a flood of advertising and a rise in problem gambling.
AG’s office is worried about push notifications and referral deals
The first Assistant Attorney General Pat Moore got things started and quickly established the intention of speaking with the MGC.
“The legislature passed not only sports betting as we know it, but responsible and safe sports wagering. We intend to do our part and hold operators accountable for the safe and responsible part. This includes many other things. This means that we require operators to adhere to our consumer protection laws, especially in relation to marketing, promotion and design of their sports betting app,” he said.
The AG’s office, like many of the industry critics and some commissioners, is concerned by the predatory nature ads, especially sign-up offers, and referral promotions.
We are seeing promotions for betting apps through referral bonuses and credits. These often lock users in for a certain period of time, or until they have spent a specific amount of money. Moore stated that promotions like these are not allowed in any other industry that poses public health risks such as the sale of alcohol and marijuana. He said that the responsibility should lie with the operators to explain why they should allow the promotion.
Moore presented an example of what will most likely occur on Friday at launch. Referring a friend can bring a college student a financial benefit. The entire floor has begun to bet, which opens the door to potentially dangerous behavior among vulnerable populations.
However, the concerns went beyond advertising. Moore advocated that the commission examine the apps and observe how they are being used to encourage betting.
Imagine a casual gambler becoming more regular. They have tried to stop the train. The customer placed a bet on the last three Celtics games, and now wants to go home. Operators can send you a nudging reminder to remind you that your team is about take the floor, but without oversight. Ask the operator if this conduct is safe and responsible.
AG’s office asks MGC to review all MA sportsbook promotion offers
Chairwoman Cathy Judd Stein was asked what the commission could do in this final stage of the game. The office suggested two things. One was to remind new businesses that they must adhere to the state Consumer Protection Act. This law is something the office has used to investigate everything, from daily fantasy sports to e-cigarettes.
They also advocated for the MGC’s approval of every promotion that operators plan to submit, particularly if it is used in advertising. Moore and his colleague admitted that vetting all advertising collateral would be a lot of work, but they believe the offers should be approved before being released.
Moore also stated that he would love to see operators use age-gating controls better on streaming and social media.
MGC commissioner reported multiple FanDuel ads violating MA regs
Concern was also raised by the MGC about advertisements on outlets such as Hulu. Eileen O’Brien Commissioner reported numerous ads she received from FanDuel on Hulu. These included references to “free betting” and suggested that users could deposit with a card. This is something that is prohibited by the state. MGC staff stated that FanDuel was working to remove the ads but it could take several days.
MGC applauded FanDuel’s responsiveness to the users’ requests regarding the ads. O’Brien, however, was less impressed. She pointed out that although she reported the incidents, they were not self-reported. She was also not happy with the speed at which the ads were taken offline.
O’Brien explained that they are responding to our flagging them, and we are being inundated by ads. “So, in my opinion, I would like you to investigate it further. As a commission, I believe we should evaluate what we will do to respond to ensure it is clear that FanDuel and any other operator does not have the violations.
Although there is not yet a formal process for how commissioners will handle violations, O’Brien seems committed to improving oversight and taking action against violators of existing regulations.
The national debate about sportsbook advertising continues, and there is growing support for reducing these ads. Online sports betting will be a memorable event, as the state and regulators want to set a new standard in responsible gambling and curbing predatory marketing.
